Devry BUSN460 Week 3 Individual Cango Financial Report

BUSN 460 Week
3 Individual Cango Financial Report
Go to the CanGo Intranet and pull the financial statements. Use
these to fill out the table found in Doc Sharing labeled Financial Analysis
Project, and submit to the Individual Financial Analysis Dropbox in Week 3 after
making sure that you have added your last name at the beginning of the file
name for your file
As you complete your studies, the BUSN460 capstone course requires
that you pull together all of your learning experiences to complete a business
case. A part of that case requires you to review and analyze financial reports.
The purpose of this refresher is to take you back to the basics and, within one
hour, get you on the road to successfully completing the financial part of the
case.
Instructions: In the following narrative we have embedded tutorials and
videos for you to view. You need only read the narrative and click on the
hyperlink, and you will be on your way. Make sure your speakers are on. If you
feel uncomfortable with a given topic, feel free to revisit this refresher and
watch the appropriate video.
There are six videos available to help you get up to speed on
conducting a financial analysis:
1.) Introduction to Accounting
2.) Interrelationship of Financial Statements
3.) Current Ratio
4.) Inventory Turnover
5.) Debt Ratio
6.) Profitability
To start this activity, please view the Introduction To
Accountingtutorial. It will help to answer the questions what is accounting,
who developed it, how does it work, how does it fit into the business model,
what are the rules and who generates them. You will learn about the basic
accounting equation and some necessary terms. The financial reports that you
will find in the case are also explained. (Transcript)
Now we move to the Interrelationships of Financial Statements
tutorial to explore the Balance Sheet, Income Statement, and Statement of Cash
Flows. These reports provide information about the financial position or health
of the business, the success of business operations, and explains where the
cash came in and where the cash went. Though this is a very basic look at the
financial reports, it is a good starting place. To go beyond this tutorial, one
could review the Annual Report of a business such as Wal-Mart available at the
company’s web site and also download a copy of Wal-Mart’s 10k Report from the
Securities & Exchange Commission as an exercise. The comparison of the two
would provide an excellent view of the financial operation of the retail
industry giant. (Transcript)
Prior to starting our videos on ratio analysis there are a few
terms that one needs to know: – Liquidity is the ability of the
company to meet its current debt obligations.
–
Solvency is the ability of the business to remain in business over a long
period of time in terms of its ability to pay its long-term debts.
–
Profitability is the company’s ability to generate a profit.
The Current Ratio tutorial includes the explanation of three
ratios. The Current Ratio, Working
Capital computation and the execution of the Quick
Ratio are demonstrated. These areLiquidity ratios.
(Transcript)
Next, we will review the Inventory Turnover In this tutorial,Inventory
Turnover Ratio and Accounts Receivable Turnoverare
demonstrated. These are Liquidity ratios.
(Transcript)
In the Debt
Ratio tutorial, thisSolvencyratio is demonstrated. (Transcript)
Moving on to the
Profitabilitytutorial, Return on Net Sales andReturn on
Assets are demonstrated. These areProfitabilityratios. (Transcript)
Hopefully you
have found this one hour investment to be profitable!
IMPORTANT: Some
ratios call for averages, (e.g. inventory turnover). Since CanGo has only one
balance sheet available, you will not use an average, you will use the
appropriate number from the most recent year’s financial statement. Also assume
that there is no interest expense. Good luck!